Nmims june assignments funding through 100% equity
1. SOLVED 2018 JUNE NMIMS ASSIGNMENTS
NMIMS JUNE READY ASSIGNMENTS
NMIMS JUNE 2018 CUSTOMIZED ASSIGNMENTS
NMIMS 2018 ASSIGNMENTS
NMIMS JUNE ANSWER SHEETS
NMIMS JUNE ASSIGNMENTS
NMIMS PGDBM ASSIGNMENTS
NMIMS UNIQUE ASSIGNMENTS
NMIMS 2018 MBA ASSIGNMENTS
NMIMS PLAGIARISED ASSIGNMENTS
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Corporate Finance
1. A Project costs ₹ 1,00,000 and is expected to generate cash inflows as: Year Cash
inflows(₹) 1 20,000 2 22,000 3 25,000 4 28,000 5 20,000 The cost of capital is 12%.
Calculate Profitability Index and suggest whether project should be accepted or not. (10
Marks)
2. Alok works in an organization which has debt and equity in its capital structure. The
net income of the firm is ₹ 2,00,000. The organization pays ₹ 50,000 every year as
interest component to debenture holders. Calculate the weighted average cost of capital
2. if the cost of equity is 12% and cost of debt is 9%. If the company’s new project will
provide a return of 10%, suggest whether company should make the investment or not.
(10 Marks)
3. Mr. Sharma was working with Delta Ltd for the past five years. The company was
planning for expansion and required a funding of ₹ 20,00,000 for the same. He was
considering two financial plans and expected EBIT due to expansion was ₹ 8,00,000.
Apart from equity(Face value ₹10) , if the company raised debt, cost of debt was 8%. Tax
rate is 35%. Calculate EPS for each financial plan and suggest which financial plan is
better for the firm. 3a) Plan
A: Funding through 100% equity (5 Marks) 3b) Plan
B: Funding through 50% Equity and 50 % Debt
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